Senior Auto Insurance Discounts: What You Need To Know

Senior citizen car insurance discounts are available from a few major insurance providers, but many companies offer other ways for mature drivers to save money on coverage. For example, some providers offer safe driver discounts, which are available to mature drivers who complete a defensive driving course.

Drivers in their 50s and 60s will typically see lower auto insurance rates than those over 75. This is because older drivers are considered higher risk, due to a higher chance of being involved in an accident and a higher risk of serious injuries resulting from a crash.

Defensive driving courses

The National Safety Council (NSC) offers an online Mature Defensive Driving Course that is approved in many states and can lead to car insurance discounts. The course is fully narrated, interactive, and engaging, and it covers important topics such as how to respond to a medical emergency, the effects of prescription medication on driving, and how to avoid distracted driving.

The AAA Foundation for Traffic Safety and the National Highway Traffic Safety Administration have partnered to create the RoadWise Driver course for seniors. This course is offered in-person and provides practical knowledge and proven methods to help seniors maintain their independence and reduce risk while driving. The curriculum is interactive and includes videos, course materials, and an instructor.

AARP also offers a Smart Driver online course that teaches evidence-based strategies to keep seniors safe behind the wheel. The course covers topics such as the effects of medication on driving, how to reduce distractions, proper following distance, and techniques for handling left turns and roundabouts. Completing this course may make you eligible for a multi-year discount on your auto insurance.

In addition to these national organizations, many states have mandated mature driver discounts for seniors who complete a state-approved driving course. These courses can help seniors save money on their auto insurance while also providing valuable knowledge to keep them safe on the road.

Multi-policy discounts

The amount of discount you receive can vary depending on the insurer and the types of policies you bundle together. Some companies offer a flat discount rate for each eligible policy you hold with them, such as 10% off for two or more policies. Others may offer varying discount rates depending on the number of policies you hold and how long you have been a member. For instance, you may receive a 10% discount for holding three or more eligible policies, or a 15% discount for being a long-term member with multiple policies.

It's important to note that the availability and eligibility requirements for multi-policy discounts can differ by state and insurance company. Therefore, it's always a good idea to contact your insurance provider or agent to inquire about specific details and requirements. Additionally, it's worth comparing the product disclosure statements of different insurance companies to ensure you're getting the same level of coverage before making a switch.

Some insurance companies that offer multi-policy discounts include GEICO, American Family Insurance, Bupa, GIO, RAA, and Suncorp. These companies provide various discounts when you bundle multiple policies, such as auto insurance with homeowners' or renters' insurance. For example, American Family Insurance offers a discount of up to 23% when customers bundle their auto and home insurance policies.

Accident-free records

Maintaining an accident-free record is one of the most effective ways to keep your auto insurance costs down. Being accident-free can help you save on your insurance premium, but there are other ways to lower your bill too.

Accident-free discounts are a great way to save on your auto insurance, but it's important to note that the length of time an accident stays on your record varies depending on the state you live in and the severity of the accident. On average, accidents remain on your record for around three to five years, but this can be longer in some cases. For example, an accident involving a DUI infraction will remain on your record for much longer than a minor fender bender.

If you're a safe driver, it's worth asking your insurance provider about accident-free discounts. Many insurers offer these discounts, and they can help you save a significant amount on your premium. However, it's important to note that not all companies offer the same discounts, and the availability of these discounts may vary by state.

In addition to accident-free discounts, there are several other ways for seniors to save on their auto insurance:

• Enrolling in usage-based programs.
• Investing in a vehicle with advanced safety features such as blind-spot monitoring, lane departure warning systems, and rearview cameras.
• Taking a mature driver course: Most states have mandated mature driver discounts for seniors who complete a state-approved driving course. Popular organizations that provide these qualified courses include The National Safety Council (NSC), AAA, and AARP.
• Comparing quotes from multiple companies: Shopping around and comparing quotes from different insurance companies can help you find the best rates, especially after an accident.
• Increasing your deductible: While this can lower your bill, it's important to remember that you'll have to pay more out of pocket if you need to make a claim.
• Taking advantage of other discounts: There are often multiple discounts available, such as good student discounts or safe driving discounts.
• Reducing your coverage: If your insurance becomes unaffordable, you can lower your coverage as long as you meet the minimum requirements in your state.
• Improving your credit score: Raising your credit score can help you get better insurance rates.

It's also worth noting that some insurance companies, such as GEICO, offer guaranteed renewal programs for customers over a certain age. This can be helpful for seniors who may struggle to find coverage due to their age.

Safe driving discounts

Defensive Driving Courses

Some insurance providers offer discounts for customers who complete defensive driving courses. For example, GEICO offers a Defensive Driving Discount, and Farmers Insurance has a mature driver discount for drivers over 55 who have completed a safe driver course in the past three years. These courses teach drivers how to be more cautious and aware on the road, reducing the risk of accidents.

Safe Driving Programs

Insurance companies like State Farm offer safe driving programs such as Drive Safe & Save™. This program uses a smartphone app or a connected car to monitor your driving behaviour and provide discounts of up to 30% on your auto insurance. The safer you drive, the more you save. The app tracks driving characteristics like smooth driving, hard braking, acceleration, and mileage.

Accident-Free Records

Insurance providers often reward drivers who maintain an accident-free record. For example, Progressive offers accident forgiveness, where your rate won't increase after your first at-fault accident. Similarly, USAA offers a discount of up to 30% for drivers who enrol in its SafePilot® telematics program, which monitors driving behaviour.

Safe Driving Devices

Some insurance companies may offer discounts for installing safe driving devices in your vehicle. These devices can track your driving behaviour and provide feedback to help you improve. They may also offer features like accident notifications and vehicle diagnostics.

Senior Citizen Safe Driving Discounts

While there are few senior-specific safe driving discounts, seniors can still benefit from the ones mentioned above. For example, GEICO's Prime Time contract is available to drivers over 50 and offers guaranteed policy renewal if they have no accidents or violations in the past three years. Similarly, The Hartford offers cheap car insurance for seniors through its partnership with AARP, providing insurance policies designed for older drivers.

Remember that safe driving discounts can vary by state and insurance provider, so be sure to check with your insurance company to see what specific safe driving discounts they offer and how you can qualify for them.

Membership in qualifying organisations

For example, GEICO offers a discount for retired government and military personnel. They also have contracts with various membership entities and other organisations, although these entities do not underwrite the insurance products.

Nationwide, another insurance company, offers a discount for membership in qualifying alumni or professional organisations.

USAA, an insurance company catering to military members, veterans, and their families, does not offer a senior discount but does provide a discount for membership or employment in certain businesses, occupational groups, or professional organisations.

Allstate also offers an "affinity membership discount" for car insurance, although it is unclear what specific organisations this applies to.

Additionally, The Hartford has partnered with AARP to offer auto insurance targeted at older drivers. While not strictly a membership organisation, AARP is a non-profit organisation that advocates for seniors and offers them various benefits, including discounted auto insurance through The Hartford.

Finally, some states mandate mature driver discounts for seniors who complete a state-approved driving course. Popular organisations that provide these qualified courses include The National Safety Council (NSC), AAA, and AARP.

Overall, membership in qualifying organisations can be a great way for seniors to save on auto insurance, either directly through organisational discounts or indirectly through state-mandated mature driver discounts.

Frequently asked questions